The Euro initially fell during the week but found enough support near the 1.11 level to turn around and bounce rather significantly. By forming the hammer on the weekly chart, this does suggest that we are trying to find a bottom.

The Euro rallied a bit during the trading session on Friday, reaching towards the 1.12 level. This begins a significant resistance barrier extending all the way to the 1.1250 level. With that in mind, even though things look very bullish I suspect that sellers could step in soon.

Thursday brought us gains on two important European currencies: CHF and EUR. The first one was gaining traction from some time already but for the second one that is something new and should be rather considered as a short-term correction.

Investing.com -- The U.S. dollar was trading broadly lower early Friday in Europe, amid rising expectations that the Federal Reserve will have to cut interest rates to support the U.S. economy to offset the damage from a widening trade war with China.

The Euro got hammered during the trading session on Thursday as more fear enter the marketplace. At this point, it’s obvious that the market is hanging on by a thread at any given moment when it comes to risk appetite.

Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the Gann angle at 1.1136. The main bottom at 1.1109 is very important because the next major support is way down at 1.0300. Crossing to the weak side of the downtrending Gann angle at 1.1104 will put the EUR/USD in a bearish position.

Data on Thursday showed that the labor market is gaining strength, even as the economy slows. Initial claims for unemployment benefits fell for the third-straight week to a seasonally adjusted 211,000, the Labor Department said.

Based on the early price action, the direction of the June U.S. Dollar Index on Thursday is likely to be determined by trader reaction to yesterday’s close at 97.881. Better-than-expected data could spike the Euro higher and the U.S. Dollar Index lower. The index could make a new high for the year if the data comes in weaker than expected.

The Euro went back and forth yet again during the trading session on Wednesday, as we are hanging about the 1.1150 range. There is a larger consolidation area that we are involved in, so at this point we need to pay attention to a couple of levels.

President Donald Trump on Wednesday said he told House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer that he can't proceed with a discussion about infrastructure spending while under investigation. Trump and the Democratic leaders were scheduled to discuss building on a preliminary agreement for $2 trillion of infrastructure spending. At an unscheduled Rose Garden press conference, Trump decried the probe by Special Counsel Robert Mueller and said he had the most transparent administration in history. Earlier, Pelosi said Trump engaged in a cover up.

Sterling slumped on Wednesday after reports that U.K. Prime Minister Theresa May could resign as soon as today amid Brexit chaos caused a sell-off of the pound. The U.S. is looking at similar restrictions on other companies, including Chinese video surveillance company Hikvision, according to Bloomberg and the New York Times.